Booking(BKNG.US) delivers a strong holiday season performance, exceeding expectations across the board! Travel demand remains resilient, with a significant 13% increase in room bookings.

After a busy holiday season, Booking Holdings (BKNG.US) reported better-than-expected fourth-quarter results, with the world's largest online travel website reporting fourth-quarter revenue of $5.5 billion, up 15.1% year-on-year, and above expectations by $320 million; and non-GAAP EPS of $41.55, above expectations by $5.46. The company said that room nights booked grew 13% to 261 million in the three months ended December 31, topping Wall Street's expectations and its own 6% to 8% growth range. Total travel bookings, including taxes, were $37.2 billion, topping expectations of $34.5 billion. Booking's operating expenses were reduced by 10% through "strict cost management methods," and adjusted EBITDA grew 26% to $1.8 billion, topping expectations of $1.65 billion. Moreover, Booking said it approved an additional $20 billion stock buyback plan. The company also paid a cash dividend of $9.60 per share, which will be paid on March 31. The company's stock rose 3.8% in after-hours trading after the earnings, dividend and stock buyback plan were announced. Booking's latest results showed that travel demand remained strong despite the gradual waning of the travel boom that started after the pandemic last summer. Earlier, online travel peers Airbnb Inc. and Expedia Group Inc. also made similar optimistic comments, both of which reported better-than-expected holiday season results. Booking raised its full-year 2024 earnings forecast in October, citing strong European performance and growth in Asia. Despite signs of a strong holiday travel season, Airbnb and Expedia gave disappointing revenue and booking volume expectations, citing the negative impact of a stronger dollar. Evercore ISI analysts warned in a research note on Tuesday that Booking's outlook could also be affected by currency volatility. The company is particularly vulnerable to currency headwinds, as about 90% of its revenue comes from outside the U.S., according to data compiled by Bloomberg.